Inventory control calculation (EOQ context): given gross requirements = 2,000, on-hand inventory = 3,000, reorder point = 500, and EOQ = 1,300, what is the order quantity this period?

Introduction / Context:In a continuous-review EOQ system, a new order of fixed size Q is placed when the inventory position falls to or below the reorder point (ROP). If the on-hand and on-order inventory comfortably exceed current needs and the ROP, no replenishment is triggered this period. Correctly applying these rules prevents overstocking and unnecessary holding costs.

Given Data / Assumptions:

• Gross requirements this period = 2,000 units.
• On-hand at start = 3,000 units; assume no outstanding backorders.
• Reorder point = 500 units; EOQ = 1,300 units.
• Standard EOQ/ROP policy with immediate recognition of demand.

Concept / Approach:Under EOQ with ROP triggering, you only place an order when inventory position ≤ ROP. First, consume the gross requirement from on-hand. Then compare the resulting level to ROP. If still above ROP, do not place an order. Order quantity in such a case is zero, regardless of EOQ—EOQ is the lot size only when a reorder is actually triggered.

Step-by-Step Solution:

Verification / Alternative check:In continuous review, the order decision hinges on inventory position versus ROP, not on EOQ alone. Because projected on-hand remains above the threshold, the system defers ordering.

Why Other Options Are Wrong:

• 3,000 or 2,000 or 7,000: none are policy-based outcomes; they ignore the ROP trigger logic.
• None of the above: incorrect because zero is a valid policy output and is listed.

Common Pitfalls:Blindly ordering EOQ each period; EOQ specifies lot size at reorder, not a standing order every cycle. Always check ROP first.

Final Answer:zero